Nexstar Net Rev: +19% In 4Q, +33% For Year

Nexstar Broadcasting Group today reported financial results for the fourth quarter and full year ended Dec. 31, 2013, that included an 18.9% gain in net revenue to $138.1 million, up from $116.1 million a year earlier. Fulll-year net revenue grew 32.7%, from $378.6 million to $502.3 million.

For the quarter:

• Local revenue was up 42.7% to $75.1 million.
• National revenue grew 59.5% to $32.8 million.
• Retransmission consent money rose 67.1% to $26.8 million.
• Digital media revenue was up 24.4% to $6.6 million.
• In this off-election year, political ad revenue fell 94.4% to $1.5 million.

For the year:

• Local revenue was up 39.5% to $265.3 million.
• National revenue grew 49.0% to $113.4 million.
• Retransmission consent money rose 66.0% to $101.1 million.
• Digital media revenue was up 68.0% to $30.8 million.
• In this off-election year, political ad revenue fell 88.9% to $5.1 million.

Perry A. Sook, Nexstar chairman, president and CEO, commented: “Nexstar’s strong fourth quarter and full year financial results mark the conclusion of another active and successful year of growth for the company. During 2013, we generated record free cash flow, EBITDA, BCF and net revenue, completed or entered into agreements to strategically expand our operating base in accretive transactions to 108 stations, lowered our weighted average cost of capital and strengthened our balance sheet, and initiated the payment of a quarterly cash dividend.

“Our near- and long-term path to growth and the enhancement of shareholder value remains on plan and 2014 will see another period of record financial results as Nexstar will benefit from its expanded scale, new operating efficiencies and synergies related to recent and soon-to-be-completed acquisitions, the renewal in the 2013 fourth quarter of a significant number of retransmission consent agreements, an expansion of our digital media initiatives and the return of the political cycle and highly rated special event programming such as the winter Olympics.

“Fourth quarter results benefited from accretive station acquisitions completed in 2013, our revenue diversification initiatives, and ongoing focus on building new local direct advertising. Reflecting growth in seven of our top ten ad categories as well as a 19% year-over-year increase in new business development, fourth quarter core ad revenue rose 47.4%, marking the company’s highest growth rate in this metric in 2013. Nexstar’s strong core television ad growth was complemented by a 67.1% rise in retransmission fee revenue and a 24.4% increase in digital media revenue which collectively more than offset the impact of a $25.8 million, or 94.4%, year-over-year reduction in political revenue.

“In addition to the strong core ad revenue growth, total combined fourth quarter retransmission fee and digital media revenue rose 56.4% to $33.4 million, representing 24.2% of 2013 fourth quarter net revenue. By comparison, total fourth quarter retransmission fee and digital media revenue comprised 18.4% of net revenue in the year-ago period and 16.9% of net revenue in the 2011 fourth quarter.”

Read the company’s report here.